Magal Security Systems Ltd. To Acquire Perimeter Products, Inc

Business Wire, Dec 1, 1997

YAHUD, Israel--(BUSINESS WIRE)--Dec. 1, 1997--Magal Security Systems, Ltd. (NASDAQ/NMS:MAGSF), announced today that a wholly-owned Magal subsidiary has entered into a definitive Asset Purchase Agreement with Perimeter Products, Inc. (PPI) and PPI's shareholders, with respect to the purchase by the Magal subsidiary of substantially all of the assets and business of PPI. PPI, which is based in Mountain View, California, designs, develops, manufactures and markets perimeter security systems. PPI reported sales of about $4.0 million for 1996 and approximately the same amount in the first nine months of 1997.

The closing, which is expected to take place before the end of the year, is subject to the satisfactory completion of a "due diligence" investigation by Magal. The purchase price will be approximately $4.4 million, payable in cash. The purchase price may be increased in the event that the "net earnings" in the future are above the net earnings estimated by the parties.

Magal Security Systems, Ltd. is engaged in the development, manufacture and marketing of computerized security systems which automatically detect, locate and identify the nature of intrusions. Magal also manufactures and markets systems which automatically detect, locate and identify explosive devices in luggage, packages and other parcels. The Company's principal products include a detection system called AISYS, and a video motion detection system called DTS. Magal's products currently are used in more than 60 countries to protect national borders and sensitive facilities from terrorism, theft and other threats.

CONTACT: WOLFE AXELROD ASSOCIATES

Stephen D. Axelrod

Susan T. Bolen (Media)

212/370-4500; 212/370-4505

e-mail: steve@wolfeaxelrod.com

or

MAGAL SECURITY SYSTEMS, LTD.

Mickey Brandt, CFO

011-972-3-539-1444